Investment letters

These days the world seems to be changing faster than ever. Rising geopolitical tensions and technological advancements, such as artificial intelligence, are increasing volatility in the global economy. Similarly, the lingering effects of the COVID-19 pandemic and the Russian invasion of Ukraine have caused further disruption to Europe’s economic sector.
Despite these conditions, there are exceptional companies in Europe that are defying these challenges. They have lengthy histories that go back decades – even centuries. At Comgest, we refer to these businesses as “compounder companies”, i. e., those that compound their strength over time. These types of companies tend to benefit from enduring competitive advantages, stable business models, brand recognition, robust cash flow generation, and a strong corporate culture that empowers them to thrive even in uncertain times.

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